Correlation Between Gansu Yasheng and Marssenger Kitchenware
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Gansu Yasheng and Marssenger Kitchenware and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gansu Yasheng with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Marssenger Kitchenware.
Diversification Opportunities for Gansu Yasheng and Marssenger Kitchenware
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Marssenger is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Gansu Yasheng is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gansu Yasheng Industrial are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Marssenger Kitchenware
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 1.13 times less return on investment than Marssenger Kitchenware. But when comparing it to its historical volatility, Gansu Yasheng Industrial is 2.07 times less risky than Marssenger Kitchenware. It trades about 0.03 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,579 in Marssenger Kitchenware Co on September 4, 2024 and sell it today you would lose (59.00) from holding Marssenger Kitchenware Co or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Marssenger Kitchenware |
Gansu Yasheng and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Marssenger Kitchenware
The main advantage of trading using opposite Gansu Yasheng and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, Marssenger Kitchenware can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Gansu Yasheng vs. Sanbo Hospital Management | Gansu Yasheng vs. Huatian Hotel Group | Gansu Yasheng vs. Andon Health Co | Gansu Yasheng vs. Yunnan Jianzhijia Health Chain |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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